“I am truly grateful that I was pointed to CAVA and that the universe placed us together. Vanessa has always made me feel human in this process and I thank her for her patience and kindness throughout…you are very much appreciated.“
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Family farmers and fishermen face unique financial pressures—unpredictable harvests, weather events, and fluctuating markets. When income becomes unstable and creditors begin to apply pressure, Chapter 12 bankruptcy may offer a way to reorganize obligations while preserving the operations that support your livelihood.
At CAVA Law, we represent eligible clients throughout South Florida in filing for Chapter 12 bankruptcy. We provide guidance on preparing a court-approved repayment plan, addressing secured and unsecured debt, and meeting all legal requirements while continuing daily operations.
A Legal Pathway to Reorganization
Chapter 12 is a specific provision of the U.S. Bankruptcy Code tailored to the needs of family farmers and fishermen with regular annual income. It offers many of the benefits of Chapter 13 but with provisions that recognize the seasonal nature and operational demands of agricultural and fishing work.
As your Chapter 12 bankruptcy attorney, we handle everything from evaluating eligibility to submitting petitions and repayment plans. We aim to help you retain ownership of your land, equipment, and core assets while creating a realistic path to resolve your financial obligations over time.
Chapter 12 allows qualifying individuals to:
- Halt creditor collection actions through the automatic stay
- Restructure secured debts with potentially lower payments
- Address unpaid taxes through the repayment plan
- Retain ownership of essential farming or fishing property
- Continue operations while repaying debts over three to five years
Why Clients Work with CAVA Law
Our firm offers legal support to individuals and businesses across South Florida facing financial strain. With experience handling bankruptcy matters under Chapters 7, 11, 12, and 13, we understand how to navigate the court’s requirements while staying focused on each client’s long-term needs.
At CAVA Law, we emphasize:
- Precise analysis of eligibility under Chapter 12
- Detailed repayment plan development based on seasonal income
- Strategic communication with the bankruptcy trustee
- Personalized attention at every stage of the process
We take a practical, client-specific approach, ensuring that each filing is prepared carefully and structured to protect what matters most.
Understanding the Chapter 12 Bankruptcy Process
Who Qualifies for Chapter 12?
Chapter 12 is designed for individuals or married couples who are actively engaged in a farming or commercial fishing operation. To qualify, more than 50% of total income must come from that activity, and a significant portion of the debt must be directly tied to it. Debt thresholds are capped, and the business must be ongoing, not paused or passive. These requirements differ slightly between farmers and fishermen. As your Chapter 12 bankruptcy attorney, we assess eligibility early, reviewing income streams, creditor types, and business structure to ensure the case meets federal criteria before filing.
The Repayment Plan Process
Repayment under Chapter 12 typically occurs over three to five years, depending on your income structure and debt obligations. The plan addresses secured debts, like equipment loans or land mortgages, and covers priority debts, including certain taxes and domestic support.
Unsecured creditors may receive partial payments based on available disposable income. Plans can be adjusted around seasonal fluctuations, which is crucial for agricultural and fishing clients.
We carefully prepare the plan, balancing legal compliance with your operation’s ability to remain stable. Our role as a Chapter 12 bankruptcy attorney includes managing the filing details, structuring the repayment proposal, and ensuring all required disclosures are properly submitted.
What Happens After Filing?
Once the petition is filed, an automatic stay goes into effect, stopping most collection actions, including foreclosure, lawsuits, and asset seizures. The court appoints a trustee who reviews your petition and repayment plan. A Meeting of Creditors, known as the 341 meeting, is then scheduled. The trustee may ask questions about income, expenses, asset valuations, and plan terms. We will attend this meeting with you, prepare your documents, and respond to all inquiries. Our involvement limits the chance of delays or objections and allows you to stay focused on the day-to-day management of your business.
Advantages Over Other Chapters
Chapter 12 offers several legal advantages not available in Chapters 11 or 13. It allows for more favorable treatment of tax obligations and flexibility in how and when debts are repaid. Debtors can restructure secured loans by reducing balances to the collateral’s market value and extending repayment terms. Administrative costs are generally lower than Chapter 11, and the process moves more efficiently. For those whose income varies seasonally or is tied to commodity cycles, Chapter 12 is often the only practical fit. We recommend this chapter only when it aligns with your business goals and legal position.
Frequently Asked Questions
Can Chapter 12 stop foreclosure on farmland or fishing equipment?
Yes. The automatic stay applies immediately after filing, temporarily halting foreclosure, repossession, and most collection efforts.
How long does the repayment plan last?
Most Chapter 12 repayment plans last three years, but extensions up to five years are available when necessary.
Do I need to liquidate my property under Chapter 12?
No. Chapter 12 is designed for reorganization, not liquidation. You usually retain your property and continue operating while repaying your debts.
What happens if income drops during the plan?
If your income decreases due to seasonal issues, weather, or market changes, it may be possible to request a plan modification. Your Chapter 12 bankruptcy attorney can help you document the change and present the request to the court.
Is Chapter 12 only for individuals?
No. Partnerships or corporations that are majority-owned by a family and engaged in farming or fishing may also qualify, depending on the structure and source of income.
Talk to a Bankruptcy Attorney Today
Chapter 12 bankruptcy offers a lifeline for family farmers and fishermen facing financial hardship. It allows them to reorganize debt without sacrificing the operations that sustain their livelihood. With its tailored protections and flexible repayment structure, Chapter 12 uniquely suits the challenges of seasonal and commodity-based industries.
At CAVA Law, we understand what’s at stake. Our experienced legal team is committed to helping South Florida clients navigate the Chapter 12 process with clarity and confidence. If you’re facing mounting financial pressure, contact us to explore whether Chapter 12 is the right solution for protecting your future.
